SUPREME COURT.

Evening Star, Volume VII, Issue 1917, 28 June 1869, Page 2

SUPREME COURT.

IN BANKRUPTCY. (Before His Honor Mr Justice Ward.) FINAL EXAMINATIONS. Re Edward Esquibmt —There was no opposition to the discharge of the bankrupt, for whom Mr Wilson appeared. The Judge said that although there was no opposition, he must take into consideration that the bankrupt had endeavoured to delay his creditors. The Court would therefore mark its sense of his conduct, by suspending his order of discharge for four mouths. Air Wilson : But there is no opposition. The Judge : It does not make any difference. When a man deliberately attempts to de-'raud his creditors, whether he is opposed or not, and the fact is brought under the notice of the Court, the Court is bound to take it into account. The bankrupt filed a deed of arrangement, as stated by himself, with the special view of delay. Re James Forsyth.—The discharge of the bankrupt, for whom Mr Barton appeared, was opposed by Air Macassey, on behalf of the two largest creditors, Air James Smith and Alessrs Hibbard and Co., both of Tokomairiro,

The bankrupt was examined by Mr Macassey, as follows : —I was in partnership with Mr Sin'th, under the style of Smith and Co., woo's-ourers and felhnongers, at Tokomairii'o. The partnership terminated on the 3Ht May, 1868. There has been no settlement of accounts up to the present time. Although the sum of L 521 18s 2d is placed in the schedule, at present I have no idea as to the extent to which I am indebted to M r Smith. Mr Barton; No settlement of accounts has taken place, and it is almost impo sible to say at present how the matter stands.

Examination continued : After the dissolution I carried on the business, and continued it from that time until the date of filing my declaration. I had a capital of {■’om L7O to LGO when I commenced. My liabilities, amounting to L 1925 7s 3d, were contracted during the past twelve mouths They were all liabilities contracted in the way of business, -with the exception of Messrs 11. Hibbard and Co.’s claim for L 684, which was contracted during the partnership with Mr Smith. It extended over some time, and was for domestic and current accounts. There was an arrangement entered into between Hibbard and Co. and myself, that so long as I paid 10 per cent, interest on the amount of the debt, I was to have time to redeem it. I paid the interest monthly, and made the last payment the mouth before I filed my schedule. The item of Ll2O represents a year's rent, which has not been paid. The claim of the Bank of Otago is for an overdrawn account, and is not secured in any way. I only admit LI2O of Mr Smith’s claim [set down as L 1706]. Mr Smith holds the account sales of wool sent home, and until he hands them over to me I can't tell how matters stand. I received no accounts from him before I filed my declaration. Mr Barton objected to the line of examination as tending to disclose a defence to an action pending in which Mr Smith as defendant and the bankrupt plaintiff. His Honor over-ruled the objection.

Examination continued : I carried on the ordinary business of the company. The ordinary books of the firm were kept by me, and the accounts of the individual members of the firm by Mr Smith. I never gave any guarantee of L 250 to Hibbard and Co ; it is the first time I heard of it. I felt justified in starting with a capital of LBO, because there are no risks in my business. If Mr Smith had paid me I had no reason to be here. He owed me upwards of LOGO ; and he stopped payment in February. The rent was not due until May. X obtained an advance of Lls3 lls 3d on some wool and flax shipped through Messrs G. G. ! 1 nsscll and Go. The flax was sold in Melbourne and the wool in London. By the account salos, the estate will receive about L7O or LBO. I estimate the present value of the wool washing machinery at L 44, and the flax dressing machinery at L 321. The first mentioned cost ipe LS4 j the other L 648. The building in which the flax works are carried on cost me LBO. When 1 commenced business I was satisfied that I should have been able to pay off my liabilities. I expected to have been able to have paid off Hibbard and Co. in about two years. Smith stopped payment on or about the 12th Febnary. It was agreed I sin mid scour his wool; he paying the advances upon each hale so scoured. I contracted some L3OO or L4OO debts after he stopped payment. I had Imped by carrying on, to obtain sufficient money to meet my current engagements. I filed my schedule on the 18th of May. By Mr Barton : Smith sent home a lot of wool to bring out goods for Smith and Hibbard, in which firm he was a pirtner. There was a 10-s upon it, with which I am charged. I should not be charged with the loss, because it was a transaction outside our legitimate business, with which I bad nothing to do. The investigation of the accounts has been completed, and there is LI6OD to my credit on the account current, I was to scour COO bales of wool for Smith, and he was to make a reasonable advance to pay the men’s wages. If he had kept his engagement, I should not have had to come to the Com t. I always paid the interest to Hibbard and Co., when it fell due.

Mr Macassey submitted that the ■bankrupt’s certificate should be suspended on two grounds—first, because he had contracted debts without any reasonable prospect of being able to pay them ; and secondly, that he should have filed his declaration of insolvency some time before he actually did. Air Barton replied at considerable length, pointing out that if the principal creditor had kept faith with the bankrupt, the latter would uot have had to come to the Court at all.

The Judge was of opinion that the bankrupt had done wrong in incurring liabilities to the extent of L3OO or LSOO after Air Smith had failed to carry out his agreement, and when he (the bankrupt) found himself unable to meet his engagements. He (the Judge) would suspend his order of discharge for a month. Air Barton said that he would endeavor to get his Honor to re-consider hla decision.

lie William Stevenson.—Mr Wilson appeared for the who was opposed by Air Stawart. The bankrupt was examined by Mr Stewart, and stated that he was a blacksmith, and worked for a considerable time at Oamaru. He earned 12s a day. He never had a banking account at Oamaru or Dunedin ; indeed, he had never been able to save any money. He knew a Air Carr, a blacksmith at Oamaru. His daughter was plaiutiff in a breach of promise of marriage case, which he (bankrupt) was defendant. Carr recovered LIOO damages against him. He recollected the morning of the trial. Carr asked him to give him LGO and costs, and he would not bring the case into court. He refused to do so ; but offered to give him LSO, if he would allow him time to pay it in. in January last, Carr offered to settle the matter if LSO were paid ; and he (bankrupt) consented to pay that sum by instalments ; but Ca-.r subsequently withdrew from the arrangement. He could make no reparation for the injury he had done Alias Carr, neither wou'd he recoup her father for the expense he had been to in bringing the action. By Mr Wilson : I have been nine weeks in gaol.

By Air Stewart : I never promised to marry Aliss Carr. I seduced her, and she had a child by me.

Mr Stewart called the attention of the Court to some circumstances connected with the case, and asked his Honor to refuse to entertain the application for a final discharge ; but to award the fullest punishment to the bankrupt that the Act allowed. The only creditor was the young woman who had obtained a verdict against the bankrupt for breach of promise in September, ISGB. Before the case was brought into court the bankrupt was asked to make some reparation for the wrong he bad done her, but be took a high stand and allowed the matter to go into Court ; the result being that a verdict for LIOO was obtained. The Court would look at the nature of a debt of this kind. The offence was one of the gravest kind known under English law, as regarded social rights ; it was in spirit a criminal offence ; and he submitted that for all purposes the Bankuiptcy Court won hi treat it as a criminal act, and punish the bankrupt in the same maimer as if he were on the criminal side of the Court. It was evidently regarded in th .t li-ht in Eng'and, as bankruptcy at home did not destroy a debt of that kind. The Judge remarked that there was no necessity for Mr Stewart to argue the point further. TheGth subsection of section 120 dealt with cases of this kind.

Mr Stewart said that the case as it went to the jury, was a most disgraceful one, aud the circumstances of it perfectly appalling, the bankrupt should receive no assistance from tne Court, and every legitimate objeo t on to bis discharge should be taken advantage of. The bankrupt evinced no desire to make the slightest reparation for the injury he bad done ; but viewed the young woman’s position with cold-heartedness and indifference.

The Judge said that it was a cruel case from first to last. The solitary debt owiug by the bankrupt was one due to a young woman whom lie had seduced under a promise of marriage, aud who had a child by him. He would take that fact iuto consideration, as well as the breach of promise of marriage. He would not allow the machinery of the Court to be made a means of avoiding the punishment of such conduct as the bankrupt had been guilty of. He would suspend his order of discharge for two years. PETITIONS FOR ADJUDICATION. The applications of Robert Heaney, and James Duunell, were granted and meetings of creditors fixed for July 6th. The application of William Strachan was adjourned for a week, COMPLETE EXECUTION OF A DEED. On the application of Mr Kenyon, the due execution of a deed of arrangement between J. W. Cotton and his creditors was confirmed. CONFIRMATION OF TRUSTEE. On the application of Mr Maeassey, the appointment of Mr Bathgate as trustee in the estate of John Ward Shackleton was confirmed,